City watchdog attacks consumer group in £9.1bn car loan payout battle

FCA clashes with Consumer Voice, alleging lack of transparency and conflict of interest The City regulator is trying to get the only consumer group arguing for higher motor finance scandal payouts thrown out of court, alleging that its co-founders have not been transparent about their funding and potential conflicts of interest. The accusations, laid out in legal filings on Wednesday, are the latest controversy in the long-running saga surrounding mis-sold car loans, with fears of large payouts having resulted in heavy lobbying by banks and a controversial intervention by the chancellor, Rachel Reeves. The Financial Conduct Authority (FCA) is now urging judges to dismiss a string of legal challenges, including by Consumer Voice, “because it has (still) failed to give a full and frank explanation of the nature of its own interest – and that of its solicitors, Courmacs Legal.” Consumer Voice, founded by ex-Which? staffers Nikki Stopford and Alex Neill in 2023, is pushing for bigger compensation for borrowers of car loans, who were overcharged when lenders were paying commission to car dealerships between 2007 and 2024. That would mean far bigger bills for specialist lenders and